Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
Tong Building is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Road and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
The $4,562 psf for the sixth level of Tong Building is “a record-breaking cost in psf terms, establishing a brand-new benchmark in Singapore’s strata workplace market,” says Savills’ Yap. She considers the agreement “a landmark operation in Singapore’s real estate record”.
According to a real property title search, Parkway Hospitals Singapore was the buyer of the office floor at Tong Building. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive medical care service provider IHH Healthcare. The medical vendor is a continuing occupant in the establishment, occupying fifty percent of the sixth floor. The other fifty percent of the ground is filled by two other health-related firms.
Yap anticipates the strata office marketplace to proceed its upward trajectory. “With businesses increasingly seeking adaptable office services and adapting to crossbreed work systems, strata workplaces are becoming a lot more desirable than ever,” she states. “The resilience of the industry and its capacity to meet changing demand suggest a promising outlook for the future.”
According to Yap, there was significant interest from a varying pool of bidders, including end-users and family workplaces.
It makes sense for Parkway Hospitals to purchase the entire sixth floor of Tong Property, offered its closeness to Mount Elizabeth Hospice and Medical Centre, which is simply a quick step up the street.
The entire 6th level of Tong Establishment on Orchard Street was sold for $31.33 million, based upon a warning on September 3. The entire strata office floor utilizes an area of 6,867 sq ft. The investment price mirrors a unit rate of $4,562 psf, which is the greatest psf value for an office space in the prime districts to day. Yap Hui Yee, executive supervisor of investment sales and capital markets at Savills Singapore, brokered the deal.
Incidentally, she dealered the past high at Solitaire on Cecil in the CBD. It was for 3 entire strata floors covering 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were yielded a total of $162.8 million, or $4,300 psf, in April 2023.
